NYSE:HIFR

Stock Analysis Report

Executive Summary

InfraREIT is engaged in owning and leasing rate-regulated electric transmission assets in the state of Texas and is structured as a real estate investment trust.

Snowflake

Fundamentals

Undervalued with solid track record.

Risks

  • InfraREIT (REIT) is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has InfraREIT (REIT)'s share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.2%

NYSE:HIFR

1.4%

US REITs

2.1%

US Market


1 Year Return

0%

NYSE:HIFR

10.4%

US REITs

-0.04%

US Market

HIFR underperformed the REITs industry which returned 13% over the past year.

HIFR underperformed the Market in United States of America which returned 1.4% over the past year.


Share holder returns

HIFRIndustryMarket
7 Day0.2%1.4%2.1%
30 Day0.4%3.6%-3.2%
90 Day-0.09%3.7%2.8%
1 Year4.9%0%15.4%10.4%2.2%-0.04%
3 Year46.3%25.3%25.8%9.4%41.5%32.3%
5 Yearn/a60.2%26.1%55.0%37.8%

Price Volatility Vs. Market

How volatile is InfraREIT (REIT)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is InfraREIT (REIT) undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

InfraREIT (REIT)'s share price is below the future cash flow value, and at a moderate discount (> 20%).

InfraREIT (REIT)'s share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

InfraREIT (REIT) is good value based on earnings compared to the US REITs industry average.

InfraREIT (REIT) is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for InfraREIT (REIT), we can't assess if its growth is good value.


Price Based on Value of Assets

InfraREIT (REIT) is good value based on assets compared to the US REITs industry average.


Next Steps

Future Growth

How is InfraREIT (REIT) expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

-1.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

InfraREIT (REIT)'s revenue is expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).

InfraREIT (REIT)'s earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

InfraREIT (REIT)'s revenue growth is positive but not above the United States of America market average.

InfraREIT (REIT)'s earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

InfraREIT (REIT)'s earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if InfraREIT (REIT) will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has InfraREIT (REIT) performed over the past 5 years?

18.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

InfraREIT (REIT)'s year on year earnings growth rate has been positive over the past 5 years.

InfraREIT (REIT)'s 1-year earnings growth exceeds its 5-year average (263.3% vs 18.6%)

InfraREIT (REIT)'s earnings growth has exceeded the US REITs industry average in the past year (263.3% vs 16%).


Return on Equity

InfraREIT (REIT) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

InfraREIT (REIT) used its assets more efficiently than the US REITs industry average last year based on Return on Assets.


Return on Capital Employed

InfraREIT (REIT) has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is InfraREIT (REIT)'s financial position?


Financial Position Analysis

InfraREIT (REIT)'s short term (1 year) commitments are greater than its holdings of cash and other short term assets.

InfraREIT (REIT)'s long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

InfraREIT (REIT)'s level of debt (101.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (135% vs 101.7% today).

Debt is not well covered by operating cash flow (13.4%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 3x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

What is InfraREIT (REIT)'s current dividend yield, its reliability and sustainability?

4.73%

Current Dividend Yield


Dividend Yield and Payments Analysis

InfraREIT (REIT)'s pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).

InfraREIT (REIT)'s dividend is above the markets top 25% of dividend payers in United States of America (3.71%).

Whilst dividend payments have been stable, InfraREIT (REIT) has been paying a dividend for less than 10 years.

Dividend payments have increased, but InfraREIT (REIT) only paid a dividend in the past 4 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.2x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of InfraREIT (REIT)'s salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average management tenure


CEO

David Campbell (50yo)

4.8yrs

Tenure

0

Mr. David A. Campbell has been President & Chief Executive Officer of InfraREIT Inc. (REIT) since August 2014 and its Board Member since September 2014. Mr. Campbell serves as President and Chief Executive ...


Management Age and Tenure

4.7yrs

Average Tenure

48.5yo

Average Age

The tenure for the InfraREIT (REIT) management team is about average.


Board Age and Tenure

4.3yrs

Average Tenure

60yo

Average Age

The tenure for the InfraREIT (REIT) board of directors is about average.


Insider Trading

No 3 month insider trading information.


Ownership Breakdown


Management Team

  • Greg Imhoff (61yo)

    VP, General Tax Counsel & Corporate Secretary

    • Tenure: 0.0yrs
  • David Campbell (50yo)

    President

    • Tenure: 4.8yrs
  • Stacey Doré (45yo)

    Senior VP & General Counsel

    • Tenure: 2.5yrs
  • Brant Meleski (47yo)

    Senior VP & CFO

    • Tenure: 4.7yrs
  • Brook Wootton

    Vice President

    • Tenure: 0.0yrs

Board Members

  • Ellen Wolf (64yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$188.99k
  • Hal Logan (74yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: US$204.99k
  • Hunter Hunt (49yo)

    Director

    • Tenure: 5.7yrs
  • John Gates (53yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$163.99k
  • David Campbell (50yo)

    President

    • Tenure: 4.8yrs
  • Trudy Harper (56yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$157.99k
  • Harvey Rosenblum (75yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$163.99k
  • Storrow Gordon (65yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$182.99k

Company Information

InfraREIT, Inc. (REIT)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: InfraREIT, Inc. (REIT)
  • Ticker: HIFR
  • Exchange: NYSE
  • Founded: 2001
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Implied Market Cap: US$1.283b
  • Market Cap: US$929.393m
  • Shares outstanding: 60.71m
  • Website: https://www.InfraREITInc.com

Location

  • InfraREIT, Inc. (REIT)
  • 1900 North Akard Street
  • Dallas
  • Texas
  • 75201
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HIFRNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 2015

Biography

InfraREIT is engaged in owning and leasing rate-regulated electric transmission assets in the state of Texas and is structured as a real estate investment trust. The Company is externally managed by Hunt U ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/05/16 02:41
End of Day Share Price2019/05/15 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.